Value Added Tax (Charities)

HC Deb 28 January 1981 vol 997 cc463-4W

Mr. Pawsey

asked the Chancellor of the Exchequer what is his estimate of the cost of zero rating charities for value added tax purposes.

Mr. Peter Rees

I assume that by zero-rating charities my hon. Friend means relieving them of VAT on their purchases. I am afraid the information to make a reliable estimate is not available.

The National Council for Voluntary Organisations has estimated that charities currently pay about £12 million a year in VAT.

Mr. Pawsey

asked the Chancellor of the Exchequer which European Economic Community member States refund or zero rate value added tax, or its equivalent, to charities.

Mr. Peter Rees

I understand that no member State of the European Community refunds to charities VAT or its equivalent paid on their purchases, or zero-rates supplies made to charities as such.